Minister Barnaby Joyce has recommended the inquiry look specifically at the way beef industry levies are collected and spent.

He says grass-fed beef producers in particular have long-held concerns about the way levy money is spent on research and development and marketing.

Mr Joyce says he understands that establishing a levy system that satisfies everyone is difficult, and "acknowledges that some producers will always want more control over the statutory levies", but that a Senate inquiry would allow all interested parties to have their say.

The terms of reference of any inquiry would have to be determined by the committee itself, should it decide to take on an investigation into beef cattle levies.

Industry levies are statutory, production-based payments, often matched by government, which are then used to fund marketing, research and development for that particular industry.